Historically the home or property development market in Nigeria has been vibrant. Coverage the current world economic slump started to take suppress in September 2008, it drained the confidence out of many investors and marketplace nose-dived coupled with general finances. But with the signs of economic recovery beginning to consider hold again, what prospects are there for upset in the industrial property markets?
When industrial and commercial property prices reached a good solid low, it signaled a pair of things. Firstly that the market was severely depressed and was likely keep that path for several years, but as well that the bottom of the trough are already reached in which the very best out, was up. While using market having stabilized at its new low, it meant that the glut of distressed properties that were pouring in had stopped, and at a time laws of supply and demand in operation, more than excess of supply far outstripping demand, prices remained depressed.
However, explored 12 months has seen the signs of recovery occurring in the commercial sector, by means of property prices still artificially low, it has begun to stimulate demand, as property development speculators are one again sensing the opportunity of making good short to medium term returns on new investments.
Office properties in particular are an illustration of this the current optimistic outlook on life. With economic forecasts being positive, albeit slow-moving, and prices being as little as they are, now is an excellent time purchaser. As confidence returns to the economy, the chance of new letting agreements is rising and properties are had been beginning to move, introducing a slow but steady rise in prices and kent ridge hill residences showflat rates. Is usually forecast that this trend continue slowly but surely, depleting the supply surplus may eventually trigger a new bout of property development taking point.
Current thinking is this specific may well lead for industrial property boom in 2014/15. Keep in mind with regarding long gestation period for first time developments to arrive at final fruition, the process needs to get kicked off now. Feasibility studies, surveys, finance – all of the listed things end up being in place before actual construction will start to are held.
All within all this will finally be a very positive time for property development. Industrial property investors have every reason in order to cautiously optimistic, as of course to medium term prospects are looking very positive, and now is the time to speculate and invest.